Please answer qustion number 10

8. Suppose Bank A has an assets-to-equity ratio of 10 and Bank B has a ratio of 20. If both banks earn a 1% rate of return on assets, then a. bank A will earn a higher rate of return on equity. b. bank B will earn a higher rate of return on equity. both banks will earn the same rate of return on equity. d. Can't be determined with information provided c. 9. Suppose a bank has $60 million of interest-sensitive assets and $40 million of interest-sensitive liabilities. Under such circumstances, an increase in interest rates will a. increase bank profits. b. decrease bank profits. C. have no effect on bank profits. d. result in bank insolvency. 10. Using gap analysis, the bank in question (8) above has a gap of a. 100 million. b. 20 million. c. 1.5 million. d. -20 million